Month: October 2024

Hyundai Motor India, the country’s second-largest carmaker, has finally made its debut in the Indian primary market with a massive IPO. The much-anticipated offering has garnered significant attention from investors, given the company’s strong brand presence, robust financials, and growth potential.

 

Key Highlights of the IPO:

 

Issue Size: The IPO is expected to raise a staggering ₹27,870.16 crore, making it one of the largest IPOs in India’s history.

Price Band: The price band for the IPO has been set at ₹1,865 to ₹1,960 per share.

Subscription Period: Investors can bid for the shares from October 15 to October 17, 2024.

Anchor Investors: The company has already secured ₹8,315.28 crore from 225 anchor investors, including prominent mutual funds and institutional investors.

Why Investors are Excited:

 

Strong Brand Value: Hyundai has built a reputation for quality, reliability, and innovation in the Indian automotive market.

Robust Financials: The company has consistently delivered impressive financial performance, driven by its diverse product portfolio and strong market share.

Growth Prospects: India’s booming automotive market presents significant growth opportunities for Hyundai, especially in segments like SUVs and electric vehicles.

Government Support: The Indian government’s focus on promoting domestic manufacturing and reducing dependence on imports is likely to benefit Hyundai.

Should You Invest?

 

While the Hyundai Motor India IPO offers a compelling investment opportunity, it’s essential to consider your risk tolerance and investment goals before making a decision. Investors should carefully analyze the company’s financials, market dynamics, and competitive landscape to assess the potential returns and risks associated with the IPO.

 

Stay Tuned for Updates

 

As the subscription period for the Hyundai Motor India IPO unfolds, we will continue to provide real-time updates on the subscription status, grey market premium (GMP), and expert opinions.

 

Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

Following a briefing from the National Development and Reform Commission of China that offered no information on more stimulus, the market rally in China lost momentum on Tuesday. 

After returning from the Golden Week holiday, mainland China’s CSI 300 soared almost 10% at the start of Tuesday. However, the index ultimately trimmed gains to a 5% increase. After a dramatic 10% decline, Hong Kong’s Hang Seng index recovered marginally to a 6.4% loss.

Tuesday saw a significant decline in other Asia-Pacific markets as investors watched Japan’s August wage and spending statistics. In real terms, household expenditure in Japan decreased 1.9% year over year in August, which was less than the 2.6% dip that experts surveyed by Reuters had predicted. The decline is occurring at the quickest rate since January, when it fell 6.3% annually. 

Additionally, that decrease occurred prior to the biggest pay increases for unionised Japanese workers in 33 years being granted during spring wage negotiations. But according to figures from the nation’s statistics agency, real salaries increased by 2% in August, reaching an average of 574,334 yen ($3,877.44).

The benchmark Nikkei 225 slipped 0.99% after the release, while the Topix was down 1.06%. South Korea’s Kospi was 0.72% lower, dragged by shares of heavyweight Samsung Electronics after it released worse than expected third quarter guidance. The small cap Kosdaq was down 0.31%. Australia’s S&P/ASX 200 slipped marginally.

U.S. stocks fell overnight as market sentiment was affected by increased oil costs and higher Treasury yields. The S&P 500 fell 0.96%, and the Dow Jones Industrial Average fell 0.94%. With a 1.18% decline, the Nasdaq Composite suffered the most loss. For the first time since August, the benchmark 10-year Treasury yield exceeded 4%, rising to 4.02%. Because of the ongoing high levels of tension in the Middle East, oil prices also increased. The price of U.S. crude rose over 3% to hover over $77 per barrel.

The Indian stock market collapsed on Thursday, with the major indices, the Sensex and Nifty 50, opening more than 1% lower due to weak global signals and growing worries of a full-fledged conflict between Iran and Israel over geopolitical tensions in the Middle East.

The Nifty 50 opened 344.05 points, or 1.33%, lower at 25,452.85, while the Sensex fell 1,264.20 points, or 1.50%, to open at 83,002.09. In four sessions, the Nifty 50 has down 3%.

The new guidelines for trading derivatives by the Securities and Exchange Board of India (SEBI) and mixed cues from Asian and US stock markets during the course of the night also affected market mood.

The following five main causes of today’s stock market meltdown in India are:

Iran – Israel Conflict
After Iran launched a volley of almost 200 missiles towards Israel on October 1 in revenge for the assassination of Hezbollah’s Hassan Nasrallah, tensions in the Middle East increased. With Tehran threatening to launch a more powerful attack if it is targeted, Israel has pledged to make Iran “pay” for the attack on its territory. Israel also declared that it had started small-scale land operations in Lebanon to attack the Hezbollah group, which is supported by Iran.

According to the most recent information, an Israeli attack on a medical facility in the heart of Beirut resulted in at least six fatalities and seven injuries, according to the Guardian.

SEBI F&O Regulations
The equity derivatives trading regulations were tightened by market regulator Sebi, which increased the entry barrier and increased the cost of trading in the asset class. Sebi published a number of new criteria in its most recent circular, including a nearly three-fold increase in the minimum trading amount and a limit on the number of weekly options contracts that can be traded on any given exchange.

The CEO and fund manager of Whitespace Alpha, Puneet Sharma, thinks that although these barriers can increase market resiliency, they also present difficulties.

According to him, the issue now is for market participants to conform with these higher compliance criteria while attempting to sustain innovation and growth.

Crude Oil Prices
Crude oil prices traded higher as worries of a further escalation in the Middle East deepened, fuelling anxieties that oil supplies from the world’s largest producing region may be jeopardised if the conflict develops. An increase in the price of oil is detrimental to countries that import the commodity, such as India, since crude accounts for a large portion of the import cost.

US West Texas Intermediate crude prices increased 1.03% to $70.82 a barrel, while Brent crude futures up 0.87% to $74.54 a barrel.

FII Selling
The foreign institutional investors (FIIs) extended their selling as they sold equities worth ₹5,579.35 crore on October 1, while domestic institutional investors extended their purchasing as they bought equities worth ₹4,609.55 crore on the same day.

Technicals
The Nifty 50 broke through the 25,700 and 25,500 downward support levels.

“A break below these levels could trigger additional selling of 300 – 500 points. Traders with long positions are advised to book profits near resistance zones and wait for dips to re-enter buying positions,” said Hardik Matalia, Derivative Analyst at Choice Broking.